Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what steps they are taking to address key barriers to foreign direct investment, such as high energy prices and land acquisition costs.
Answered by Lord Stockwood - Minister of State (HM Treasury)
We are taking decisive steps to remove barriers to investment, strengthening the UK’s competitiveness. To address high energy costs, the British Industrial Competitiveness Scheme will reduce industrial electricity prices by up to 25%, supporting thousands of manufacturers. The new Strategic Sites Accelerator, backed by over £600 million, will unlock an initial wave of sites for investment from the growth-driving sectors of the Industrial Strategy from next financial year, with the aim of scaling up the programme over time. These measures form part of a wider strategy to create a pro-investment environment that drives growth and innovation.
Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the need for a coordination service to assist new international investors; and what steps they are taking to deliver this.
Answered by Lord Stockwood - Minister of State (HM Treasury)
The Government has established the service described. It is the Office for Investment (OfI), a joint unit of HM Treasury, the Department for Business and Trade, and Number 10 Downing Street. The OfI was launched in its current form in June 2025, with a remit to source and secure transformational investment that drives economic growth, job creation, and increased productivity across the UK. The OfI operates as a central government function, working across departments and with external partners to attract and land high-value, strategic investments into the UK.
Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what steps they are taking to encourage long-term, high-value entrepreneurship through foreign direct investment.
Answered by Lord Stockwood - Minister of State (HM Treasury)
The Government is taking decisive steps to foster long-term, high-value entrepreneurship through foreign direct investment. Reforms to procurement, generous R&D tax reliefs, and targeted programmes such as BridgeAI, Growth Catalyst (£130 million) and Enterprise Fellowships will unlock capital, markets and talent. Major investment in AI and semiconductors, alongside a three-year stamp duty holiday for UK-listed firms, gives global investors confidence to back UK innovators and drive sustained growth.
Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what consideration they have given to replicating the Office for Investment: Financial Services model for other key strategic sectors identified in the Science and Technology Framework.
Answered by Lord Stockwood - Minister of State (HM Treasury)
The OfI: Financial Services is a bespoke concierge service partnership involving HM Treasury, the OfI, the Financial Conduct Authority, the Prudential Regulation Authority, and the City of London Corporation. It was created to address the particular investment-related needs of the FS sector but was deliberately branded as the OfI to reflect its commonality with the OfI’s remit of sourcing and securing transformational investment. Whilst the Government will always consider the optimum approach to attracting investment, the OfI remains the single front door investment delivery body for the UK. The OfI works closely with DSIT to maximise investment in the Tech sector.
Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what steps they are taking to attract greenfield foreign direct investment in sectors crucial to the UK's industrial strategy.
Answered by Lord Stockwood - Minister of State (HM Treasury)
The UK’s new ten-year Industrial Strategy, launched in June 2025, is explicitly designed to attract and support investment by providing a stable, long-term framework. Targeted initiatives and incentives exist or are planned in areas such as nuclear power expansion, AI Growth Zones, Industrial Strategy Zones and lower energy costs. The Office for Investment (OfI) has expanded its remit, offering tailored support to major and strategically aligned investors. This includes a new Strategic Investment Opportunities team working with local leaders and agencies to identify and deliver high-impact projects, especially in government-priority sectors.
Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what metrics are used to assess the effectiveness of the Office for Investment's concierge service for high-value investors; and how they ensure that departments and arms-length bodies are accountable for delays or failures in progressing high-value investments supported by the Office for Investment.
Answered by Lord Stockwood - Minister of State (HM Treasury)
OfI uses a range of metrics to assess the effectiveness of its operations. These are currently for internal use. OfI’s output is reported in the Official Statistics, and cover market origin, sector and distribution of investment across the UK. This will be supported by the OfI Board, which will coordinate investment activity across HMG and is chaired by the Minister for Investment.
Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have undertaken on the impact of regulatory burdens on the confidence of foreign investors, and on the UK's competitiveness.
Answered by Lord Stockwood - Minister of State (HM Treasury)
This Government has recognised that the administrative burden of regulation is too high. We have now established a baseline for the administrative burden of regulation on businesses of £22.4 billion a year. This is why we have committed to reduce this administrative burden by 25%, or £5.6bn, by the end of this Parliament. The Government is working to make the UK the best place to start and grow a business and this approach is designed to create a regulatory environment that is proportionate, transparent and internationally competitive, enabling businesses to innovate and invest with confidence.
Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government which areas of the United Kingdom have experienced the largest decreases in foreign investment since 2023; and what steps they are taking to ensure the even distribution of foreign investment throughout the UK.
Answered by Lord Stockwood - Minister of State (HM Treasury)
DBT Official Statistics on inward investment show that FDI project numbers into the UK fell from 2023/24 to 2024/25, with London seeing the largest drop and the East of England recording the biggest percentage decline. Year-on-year changes remain volatile and should be interpreted cautiously.
To attract investment, mayoral strategic authorities are delivering growth plans aligned with local strengths and clear pipelines. Our strategy focuses on enhancing infrastructure, skills, and sector clusters to make all UK regions competitive for long-term foreign investment.
Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what is their assessment of the performance of foreign direct investment in the UK compared to that of the other G7 nations.
Answered by Lord Stockwood - Minister of State (HM Treasury)
Data published by the United Nations Trade and Development Data Hub show that at the end of 2024 the UK ranked second in the G7 (behind the United States) for levels of inward foreign direct investment (FDI) stock.
Levels of inward FDI stock for G7 nations at the end of 2024 | |||
G7 Rank | G7 Nations | USD$ billion | Global Rank |
1 | United States | 15,567 | 1 |
2 | United Kingdom | 3,254 | 3 |
3 | Canada | 1,819 | 7 |
4 | Germany | 1,209 | 8 |
5 | France | 1,049 | 12 |
6 | Italy | 494 | 20 |
7 | Japan | 220 | 35 |
Asked by: Lord Risby (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what steps they are taking to ensure that the United Kingdom remains internationally competitive in attracting foreign direct investment.
Answered by Lord Stockwood - Minister of State (HM Treasury)
The Government has introduced a modern Industrial Strategy aimed at boosting nationwide growth by removing investment barriers and improving access to finance. The Office for Investment (OfI) has expanded its commercial expertise and regional presence, collaborating with Mayors and Devolved Administrations to link investors with high-potential UK opportunities. Additionally, UK Export Finance has enhanced support for international investment through its new ‘Invest-to-Export’ Guarantee, designed for overseas firms investing in UK export facilities.